Good morning,
There’s panic in the bond markets this morning as Greece appears to spiral out of control. Two-year notes have surged more than three percentage points to a yield of almost 28%. The Federal Open Market Committe meets June 16-17. Chair Janet Yellen will hold a press conference at the conclusion of the two-day meeting. But Greece has overshadowed what would otherwise be a central stage event.
The breakdown in talks between Greece in its creditors slams markets. Greek stocks fell 4%, other European markets fell more than 1%, and the euro is down sharply. On Sunday, talks fell apart and it now likes more and more likely that the tiny Mediterranean nation will default on a $1.8 billion payment due to the International Monetary Fund on June 30. New York Times (paywall), Bloomberg
China adds record number of millionaires as stock prices surge. That’s U.S. dollars. China now counts 4 million people among the exclusive club, a one-million gain, according to Boston Consulting Group. Only the U.S. has more at 7 million. South China Morning Post (SCMP)
Saudia Arabia opens its stock market to foreigners. Sort of. The $585 billion market — biggest in the Middle East — still places plenty of restrictions on investors but institutions are excited to dip their toes into this region. Saudia Arabia is looking to diversify its revenues — 90% come from oil. ABC News
Aberdeen sells shares. The British fund manager sold 100 million pounds worth of non-voting shares to Mitsubishi, its existing shareholder. The money raised will provide Aberdeen with fresh capital needed to launch new funds. Financial Times (paywall)
“Jurassic World” scores second-largest opening weekend in history. The fourth installment of the Jurassic Park franchise, Jurassic World, surpassed media analysts expectations this weekend as it became the second movie to break through the $200 million opening weekend mark. The Dino-flick raked in over $204 million this weekend, $3 million shy of toppling “The Avengers” $207 million box-office debut. Bloomberg
Colt to file Chapter 11 bankruptcy protection. One of the world’s oldest gunmakers, Colt Defense, is slated to file Chapter 11 bankruptcy protection today. This comes after the company faced several accounting and operational issues after losing the contract to supply the U.S. Military with M4 rifles. WSJ
High-flying Prada sees shares hit three-year low. Shares of the luxury brand Prada slid as much as 6% – its lowest level in three years – as first quarter profit missed analyst estimates by a wide margin. Expected to come in at around $95 million, the actual figure came in at $66 million. Bloomberg
Photo by Charles Tsevis via Flickr.